Encision Reports Second Quarter Fiscal Year 2026 Results

BOULDER, CO / ACCESS Newswire / November 14, 2025 / Encision Inc. (PK:ECIA), a medical device company owning patented Active Electrode Monitoring (AEM®) Technology that prevents dangerous radiant energy burns in minimally invasive surgery, today announced financial results for its fiscal 2026 second quarter that ended September 30, 2025. The Company posted quarterly product net revenue of $1.48 million and service net revenue of $46 thousand, or total net revenue of $1.52 million, resulting in a quarterly net loss of $268 thousand, or $(0.02) per diluted share. These results compare to product net revenue of $1.65 million and service net revenue of $102 thousand, or total net revenue of $1.76 million, resulting in a quarterly net loss of $170 thousand, or $(0.01) per diluted share, in the year-ago quarter. Gross margin on product net revenue was 46% in the fiscal 2026 second quarter and 47% in the fiscal 2025 second quarter. "Encision continues to fight the attrition of laparoscopic surgical procedure migration to robotics and is focusing our time and resources innovating in segments where robotics are not a factor," says Gregory Trudel the President and CEO of Encision. Our development efforts are culminating in the completion of a new device for the Ear Nose and Throat space that will deliver new levels of patient safety, surgical performance and efficiency, and significant cost savings to hospitals and surgery centers. We expect the product launch in our Q4 and are assembling sales channels and other necessary resources." Encision Inc. designs and markets a portfolio of high-performance surgical instruments that deliver advances in patient safety, surgical performance, and value to hospitals across a broad range of minimally invasive surgical procedures. Based in Boulder, Colorado, the company pioneered the development and deployment of Active Electrode Monitoring (AEM) technology to eliminate dangerous stray energy burns during minimally invasive procedures. For additional information about all our products, please visit www.encision.com . In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that statements in this press release and elsewhere that look forward in time, which include everything other than historical information, involve risks and uncertainties that may cause actual results to differ materially from those indicated by the forward-looking statements. Factors that could cause the Company's actual results to differ materially include, among others, its ability to develop new or enhanced products and have such products accepted in the market, its ability to increase net sales through the Company's distribution channels, its ability to compete successfully against other manufacturers of surgical instruments, insufficient quantity of new account conversions, insufficient cash to fund operations, delay in developing new products and receiving FDA approval for such new products and other factors discussed in the Company's filings with the Securities and Exchange Commission. Readers are encouraged to review the risk factors and other disclosures appearing in the Company's Annual Report on Form 10-K for the year ended March 31, 2025, and subsequent filings with the Securities and Exchange Commission. We do not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events, or otherwise. CONTACT: Brandon Shepard, Encision Inc., 303-444-2600, bshepard@encision.com Encision Inc. Condensed Balance Sheets September 30, 2025 Unaudited March 31, 2025 Audited ASSETS Current assets: Cash $ 71,731 $ 257,433 Accounts receivable 761,947 786,471 Inventories 1,468,863 1,483,182 Prepaid expenses 144,331 85,679 Total current assets 2,446,872 2,612,765 Equipment: Furniture, fixtures and equipment, at cost 2,628,661 2,585,446 Accumulated depreciation (2,378,645 ) (2,340,689 ) Equipment, net 250,016 244,757 Right of use asset 1,116,454 568,395 Patents, net 161,427 171,890 Other assets 81,990 72,892 TOTAL ASSETS $ 4,056,759 $ 3,670,699 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 314,815 $ 346,900 Line of credit 31,706 395,964 Secured notes 35,202 44,128 Accrued compensation 199,657 180,850 Deferred Revenue - 17,401 Other accrued liabilities 147,019 160,274 Accrued lease liability 343,172 430,398 Total current liabilities 1,071,571 1,575,915 Long-term liabilities: Secured notes 162,249 177,470 Accrued lease liability 958,152 266,212 Total liabilities 2,191,972 2,019,597 Commitments and contingencies (Note 4) Shareholders' equity: Preferred stock, no par value: 10,000,000 shares authorized; none issued and outstanding - - Common stock and additional paid-in capital, no par value: 100,000,000 shares authorized; 16,879,645 and 11,879,645 issued and outstanding at September 30, 2025, and March 31, 2025, respectively 24,938,998 24,416,347 Accumulated (deficit) (23,074,211 ) (22,765,245 ) Total shareholders' equity 1,864,787 1,651,102 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 4,056,759 $ 3,670,699 Encision Inc. Condensed Statements of Operations (Unaudited) Three Months Ended Six Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 NET REVENUE: Product $ 1,481,802 $ 1,653,820 $ 2,974,634 $ 3,245,779 Service 46,248 101,568 156,144 140,539 Total revenue 1,528,050 1,755,388 3,130,778 3,386,318 COST OF REVENUE: Product 805,734 882,886 1,472,545 1,550,520 Service 24,983 44,020 82,441 64,653 Total cost of revenue 830,717 926,906 1,554,986 1,615,173 GROSS PROFIT 697,333 828,482 1,575,792 1,771,145 OPERATING EXPENSES: Sales and marketing 395,793 458,480 800,394 881,716 General and administrative 358,639 373,405 686,838 725,310 Research and development 201,392 155,515 366,832 294,695 Total operating expenses 955,824 987,400 1,854,064 1,901,721 OPERATING (LOSS) (258,491 ) (158,918 ) (278,272 ) (130,576 ) Interest expense, net (11,384 ) (10,598 ) (29,393 ) (16,967 ) Other (expense) income, net 2,042 (746 ) (1,301 ) (679 ) Interest expense and other income (expense), net (9,342 ) (11,344 ) (30,694 ) (17,646 ) (LOSS) BEFORE PROVISION FOR INCOME TAXES (267,833 ) (170,262 ) (308,966 ) (148,222 ) Provision for income taxes - - - - NET (LOSS) $ (267,833 ) $ (170,262 ) $ (308,966 ) $ (148,222 ) Net (loss) per share-basic and diluted $ (0.02 ) $ (0.01 ) $ (0.02 ) $ (0.01 ) Weighted average shares-basic and diluted 14,187,337 11,875,145 13,033,491 11,875,145 Encision Inc. Condensed Statements of Cash Flows (Unaudited) Six Months Ended September 30, 2025 September 30, 2024 Cash flows (used in) operating activities: Net (loss) $ (308,966 ) $ (148,222 ) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation and amortization 48,570 42,525 Stock-based compensation expense related to stock options 22,651 25,011 Provision for potential inventory obsolescence 2,569 83,152 Change in operating assets and liabilities: Right of use asset, net 56,656 (6,909 ) Accounts receivable 24,524 74,127 Inventories 11,750 154,520 Prepaid expenses and other assets (55,968 ) 15,935 Accounts payable (49,487 ) (26,678 ) Accrued compensation and other accrued liabilities 5,552 (20,762 ) Net cash (used in) provided by operating activities (242,149 ) 192,699 Cash flows (used in) investing activities: Acquisition of property and equipment (43,215 ) (42,559 ) Patent and Trademark costs (11,933 ) (17,359 ) Net cash (used in) investing activities (55,148 ) (59,918 ) Cash flows from financing activities: (Repayments) Borrowing from line of credit (364,258 ) (77,834 ) (Payments) from options exercised - (1,449 ) Proceeds from issuance of common stock 500,000 - (Paydown) Draw on Secured notes (24,147 ) 134,007 Net cash provided by financing activities 111,595 54,724 Net (decrease) increase in cash (185,702 ) 187,505 Cash, beginning of fiscal year 257,433 42,509 Cash, end of six months $ 71,731 $ 230,014 Supplemental disclosures of cash flow information: Cash paid during the year for interest $ 29,393 $ 16,967 SOURCE: Encision, Inc. 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